On April 6, the California Judicial Council, which is the policymaking body of the California court system, adopted 11 emergency rules in light of the coronavirus (“COVID-19”) pandemic.
Emergency Rule 2 suspends all judicial foreclosures, including actions for deficiency judgments. All judicial foreclosures are stayed and the statute of limitations is tolled until 90 days after the Governor declares that the state of emergency related to the COVID-19 pandemic is lifted, or until the Rule is amended by the Judicial Council. The Rule does allow for the courts to proceed with certain judicial foreclosure cases if the court finds that action is required to further the public health and safety. Finally, the Rule extends the period for electing or exercising any rights under California Code of Civil Procedure Part 2, Title 10, Chapter 1 – “Actions for the Foreclosure of Mortgages,” including any right of redemption from the foreclosure sale.
While Emergency Rule 2 stays all foreclosures for the near future, it does not establish any new rights or requirements concerning judicial foreclosures.